Govt to credit Shs 1.5 Trillion on NSSF members’ accounts

By Our Reporter

26^th Sept 2023

The Finance and Economics Development Minister, Matia Kasaijja, has officially declared a 10% interest rate for member’s savings in the National Social Security Fund (NSSF) for the fiscal year ending in June 2023. 

The 10% interest rate translates into a substantial total of Shillings 1.591 trillion to be credited to the accounts of NSSF members.

Kasaijja’s announcement aligns with the fund’s commitment to providing an interest rate that exceeds the average inflation rate recorded over the past decade by 2 percentage points.

The ten-year average inflation rate stands at 4.2 percent.

It’s noteworthy that the 10% interest rate marks a 0.35% increase compared to the 9.65% rate announced during the same period in the previous year.

This upward adjustment is attributed to the fund’s improved income, which has risen from 1.9 trillion shillings to 2.2 trillion Shillings during the same period.

Kasaijja commended the fund’s management and leadership for their commendable performance, despite facing managerial challenges over the past 8 months. He expressed satisfaction with the growth of the fund’s assets, which now exceed 18.65 trillion Shillings.

The remarkable 15% increase in the fund’s income, from Sh1.9 trillion to Sh2.2 trillion, signifies prudent and productive investments made by the fund, according to the minister.

Betty Amongi, the Minister for Gender, whose ministry now shares oversight of the fund with the Ministry of Finance, expressed satisfaction with the increased collections despite the challenges faced during the transition.

Patrick Ayota, the NSSF Managing Director, highlighted the growth in the fund’s dividend income from equity and real estate projects.

He noted that the dividend income from equity had grown from 84 billion Shillings to 139 billion Shillings, while real estate projects had slightly increased from 13.4 billion Shillings to 14 billion Shillings.

Ayota acknowledged past challenges and scandals faced by the NSSF, including allegations of mismanagement but emphasized the fund’s strength and resilience.

He pointed out that the fund had disbursed 1.2 trillion Shillings in benefits to its members, demonstrating its commitment to fulfilling its core mandate.